Shares of Adlabs Entertainment Limited on the BSE and NSE on Monday in a dramatic manner. The company had tapped the capital markets with its fresh issue and offer for sale in a price band of Rs 221-230 which was revised downwards to Rs 180-215. Allotment was made at Rs 180 and there was a discount of Rs 12 to retail investors. On the NSE the discovered price was Rs 162 which is a good Rs 18 or 10% lower than the issue price. In the first half hour of trading on the NSE 2021 lac shares changed hands at an average price of Rs 171.44. In the next half hour i.e. from 10.30 am to 11 pm the volume was 22.62 lac shares at an average price of 185.96. Effectively almost half the day’s traded volume happened in the first hour where 42.86 lac shares were traded against the total of 90.21 lac shares on NSE.

Reliance Mutual Fund bought 5,35,900 shares at an average price of Rs 172 band it has happened in this first hour. Incidentally Reliance was the former partner of the promoter of Adlabs Mr Manmohan Shetty who initially sold a stake to Anil Ambani and then exited Adlabs which was subsequently renamed Reliance Mediaworks. Was this deal a pure opportunity, or a bail out or respect for an old partner will never be known but it certainly turned the tide for the share. Adlabs Entertainment which was struggling at the start gained ground and also hit the upper circuit before finally closing at Rs192.65 on the NSE and Rs 191.25 on the BSE. The scrip gained Rs 11.25 or 6.25% on the BSE and Rs 12.65 or 7.03%.

From the above table it is clear that 18.62 lac shares were delivered on day one which is about 9.2% of the shares which were issued in the IPO. It’s a decent percentage and very clearly investors who have applied and not panicked in selling have made money. Going forward how the share behaves would be of importance for the company which has a great theme park at Khalapur near Khopoli.